(a) Investments by superannuation funds which are held and administered by life insurance offices are included under life insurance offices.

See note on consolidation in Explanatory Notes, paragraph 10.

Total consolidated assets

SEPTEMBER KEY POINTS

CONSOLIDATED ASSETS

Total consolidated assets of managed funds institutions was $1042.1b at 30 September 2006, an increase of $15.1b (1.5%) on the revised June quarter 2006 figure of $1027.0b.

Consolidated assets of superannuation funds increased by $12.8b (2.3%) and public unit trusts were up by $3.6b (1.6%). Partially offsetting these was a decrease in the consolidated assets of life insurance offices of $0.6b (-0.3%), friendly societies of $0.5b (-11.1%) and cash management trusts of $0.2b (-0.4%).

Investments in assets overseas increased by $10.6b (4.8%). Other increases were recorded in short-term securities, up $7.9b (10.2%), equities and units in trusts, up $3.7b (0.9%) and loans and placements up $0.7b (3.0%). Investments in long term securities were down $4.0b (-4.5%), other assets down $3.1b (-10.1%) and cash and deposits down $0.8b (-1.1%). During the September quarter 2006, the S&P/ASX 200 rose 1.6%, the price of foreign shares (represented by the US S&P 500) rose 5.1% and the $A appreciated against the $US by 0.6%. In addition the 5 year Treasury Bond yield, averaged over the three months within the quarter, increased from 5.72% to 5.77%.

Investment managers had $988.0b in funds under management at 30 September 2006, up $15.9b (1.6%) on the revised June quarter 2006 figure of $972.0b. They managed $700.1b (67.2%) of the consolidated assets of managed funds institutions.

NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER)

Release Date

December 2006

27 February 2007

March 2007

30 May 2007

June 2007

30 August 2007

September 2007

29 November 2007

REVISIONS THIS ISSUE

There have been revisions in some series as a result of quality assurance work undertaken with data providers.

SIGNIFICANT EVENTS

There are no significant events in this issue.

ROUNDING

Discrepancies may occur between sums of the component items and totals due to rounding.

INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Sawbhag Naidu on Canberra (02) 6252 5386.

ANALYSIS

CONSOLIDATED ASSETS

By type of institution

At 30 September 2006, consolidated assets of superannuation funds were $558.8b, up $12.8b (2.3%) on the revised June 2006 figure. Consolidated assets of public unit trusts increased by $3.6b (1.6%). Consolidated assets of life insurance offices decreased by $0.6b (-0.3%), friendly societies decreased by $0.5b (-11.1%), and the assets of common funds and cash management trusts moved marginally on the June quarter figures.

By type of asset

The major asset movements for the quarter were assets overseas up $10.6b (4.8%), short-term securities, up $7.9b (10.2%), equities and units in trusts, up $3.7b (0.9%) and loans and placements up $0.7b (3.0%). There were decreases in long term securities, down $4.0b (-4.5%), other assets, down $3.1b (-10.1%) and cash and deposits, down $0.8b (-1.1%).

Cross investment

The table below presents the unconsolidated, cross-invested and consolidated assets of managed funds by type of fund as at 30 September 2006.

Unconsolidated assets

Cross- invested assets

Consolidated assets

Type of fund

$m

$m

$m

Life insurance offices

238 926

35 911

203 015

Superannuation funds

736 534

177 774

558 761

Public unit trusts

263 962

35 991

227 971

Friendly societies

6 777

2 688

4 089

Common funds

10 711

499

10 212

Cash management trusts

38 018

-

38 018

Total

1 294 929

252 863

1 042 065

- nil or rounded to zero (including null cells)

UNCONSOLIDATED ASSETS

Life insurance offices

At 30 September 2006, the total assets of life insurance offices were $238.9b, an increase of $0.8b (0.3%) on the revised June 2006 figure of $238.2b. Increases were recorded in equities and units in trusts of $2.2b (1.4%) and assets overseas of $0.5b (3.5%). Partially offsetting this was a decrease in short term securities of $0.5b (-4.4%), land and buildings of $0.4b (-4.3%), long term securities of $0.4b (-1.5%), other financial assets of $0.3b (-11.3%) and loans and placements of $0.2b (-7.2%).

Superannuation funds

The total assets of superannuation funds held outside of life offices was $736.5b at 30 September 2006, an increase of $16.8b (2.3%) on the revised June 2006 figure. Major increases were recorded for assets overseas of $8.3b (5.3%) equities and units in trusts of $6.1b (1.7%), short term securities of $4.7b (16.0%) and cash and deposits of $1.6b (2.6%). Decreases were recorded for other financial assets of $2.1b (-16.5%) and long term securities of $1.2b (-2.2%).

Public unit trusts

The total assets for public unit trusts was $264.0b at 30 September 2006, up $5.9b (2.3%) on the revised June 2006 figure of $258.0b. The major increases were in equities and units in trusts up $2.5b (2.7%), assets overseas up $1.8b (3.8%), loans and placements, up $0.9b (10.9%), land and buildings, up $0.9b (1.2%) short term securities up $0.6b (10.9%) and other non-financial assets up $0.5b (4.6%). There were decreases in other financial assets of $0.9b (-16.0%) and long term debt securities of $0.4b (-25.8%).

Friendly societies

Total assets of friendly societies was $6.8b at 30 September 2006, virtually unchanged from the June quarter 2006 figure. An increase in equities and units in trusts, up $0.5b (21.9%), was offset by a decrease in cash and deposits of $0.5b (-41.8%).

Common funds

Total assets of common funds was $10.7b at 30 September 2006, virtually unchanged from the June quarter 2006 figure. The major movements were in short term securities, which increased by $0.4b (12.1%) and cash and deposits, which decreased by $0.4b (-16.8%).

Cash management trusts

Total assets of cash management trusts was $38.0b at 30 September 2006, down $0.2b (-0.4%) on the June 2006 figure of $38.2b. Decreases occurred in long term securities of $2.0b (-39.5%), and cash and deposits of $0.8b (-15.2%). These were mostly offset by an increase in short term securities of $2.7b (10.5%).

INVESTMENT MANAGERS

Source of funds under management

During the September quarter 2006, there was an increase in total funds under management by investment managers of $15.9b (1.6%) on the revised June quarter figure, bringing the total funds under management to $988.0b.

The value of funds under management on behalf of superannuation funds increased by $8.5b (2.2%), public unit trusts increased by $3.1b (2.7%), cash management trusts $0.4b (1.3%) and life insurance offices increased by $0.2b (0.2%). This was partially offset by decreases in the value of funds under management on behalf of common funds of $0.5b (-5.3%).

During the quarter, the value of funds under management on behalf of sources other than managed funds increased $2.8b (1.2%). Of this, the largest increases were in funds under management on behalf of other trusts, up $2.9b (2.2%) and other investment managers up $2.2b (8.4%). These were partially offset by a decrease in funds under management on behalf of government, down $1.8b (-7.2%) and other sources, down $0.7b (-2.1%).

The value of funds under management on behalf of overseas sources was $42.2b, an increase of $1.7b (4.1%) on the revised June 2006 quarter figure.

The value of managed funds assets invested through investment managers was $700.1b at 30 September 2006, representing 67.2% of the consolidated assets of managed funds.

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